MARKET OVERVIEW - UK bond yields climbed to their highest level in 12 days.

UK's 10-year government bond yield climbed to its highest level in 12 days, driven by heightened caution ahead of Chancellor Rachel Reeves' spring budget announcement on Wednesday. Investors are anticipating an increase in government bond supply for the 2025/2026 fiscal year, which could potentially lead to rising bond yields.

Patrick Munelly from Tickmill Group stated, “Following the disappointing fiscal data in February, we expect upside risks alongside a forecasted rise in bond sales to £315 billion for the 2025/2026 fiscal year.” The yield on the 10-year bond rose by approximately 3 basis points, reaching 4.754%.